Singaporean company Risco Energy Investments, a major shareholder in Perth-based Tap Oil, has announced an unsolicited takeover bid worth $29.8 million for the company. Tap has advised its shareholders to take no action in relation to the offer until the board can take more time to review the offer.
Risco currently holds 22.2 per cent of Tap Oil’s shares, and has laid out a bid of 7 cents per share for the other 77.8 per cent of the company’s ordinary shares. The move follows on from recent board changes at Tap incited by Risco as part of its attempts to increase returns and lower capital investment; three Tap directors, James Menzies, Peter Mansell and Andrea Hall, resigned in February, and Risco’s Chris Newton and Govert van Ek were then appointed to the Tap board.
Tap Oil is primarily known for its 30 per cent interest in the Manora oil field in the Gulf of Thailand as well as multiple exploration permits and leases in the Carnarvon Basin in northwest Western Australia.
Risco’s offer is expected to close on June 18, and Tap chief financial officer and general manager Chris Bath has said that he will keep shareholders informed of further developments.